document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1072699>Question 1072699</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much money should be deposited today in an account that earns 6.5 %<BR>\n" );
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document.write( "compounded monthly so that it will accumulate to $ 14,000<BR>\n" );
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document.write( "in three&#8203; years?\r<BR>\n" );
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document.write( " I got 2,478.29 and it is wrong. All i have done is plug it into my calculator. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #687525 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=687525\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> your annual interest rate is 6.5% / 100 = .065\r<BR>\n" );
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document.write( "there are 12 months in the year.\r<BR>\n" );
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document.write( "your number of months is equal to 12 * 3 = 36\r<BR>\n" );
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document.write( "your monthly rate is .065 / 12 = .005416666.....\r<BR>\n" );
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document.write( "the formula is f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present valued<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "your time periods are in months.\r<BR>\n" );
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document.write( "replace f with 14000 and replace r with .005416666.... and replace n with 36 and your formula becomes:\r<BR>\n" );
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document.write( "14000 = p * (1.005416666....) ^ 36\r<BR>\n" );
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document.write( "divide both sides of this equation by (1.005416666....) ^ 36 to get:\r<BR>\n" );
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document.write( "14000 / ((1.005416666....) ^ 36) = p\r<BR>\n" );
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document.write( "solve for p to get:\r<BR>\n" );
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document.write( "p = 11525.74876\r<BR>\n" );
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